- Gold price rocketed higher this week and moved above the $1240 resistance against the US Dollar.
- The price is currently near the $1265 resistance zone, and attempting a correction towards a bullish trend line at $1255 on the hourly chart.
- Today, the US Initial Jobless Claims for the week ending May 13 released by the US Department of Labor posted a decline from 236K to 232K.
Gold Price Technical Analysis
It looks like it was a great week for Gold price, as it broke the $1240 and $1250 resistance levels against the US Dollar to trade towards $1265.
The price traded as high as $1264.93 where it faced offers, and after the US Initial Jobless Claims, there was a minor decline.
The price moved below the 23.6% Fib retracement level of the last wave from the $1241 low to $1265 high.
Gold Price Hourly Chart
However, the downside move may soon find support near a bullish trend line at $1255 on the hourly chart.
The trend line support is also around the 38.2% Fib retracement level of the last wave from the $1241 low to $1265 high.
However, the most important support is waiting on the downside near $1245. It is a pivot zone, and there is also a bullish trend line around the $1244 level waiting to hold losses if the price moves down going forward.
US Initial Jobless Claims
Today in the US Initial Jobless Claims figure for the week ending May 13 was released by the US Department of Labor. The market was expecting an increase from 236K to 240K.
The actual result was better than the market forecast, as there was a decline in the Initial Jobless Claims from 236K to 232K. The report added that the “4-week moving average was 240,750, a decrease of 2,750 from the previous week’s unrevised average of 243,500“.
Furthermore, there was a mention that the “advance seasonally adjusted insured unemployment rate was 1.4 percent for the week ending May 6, unchanged from the previous week’s unrevised rate“.
Overall, there is a chance of a minor correction in Gold price, but it remains supported above $1245 in the near term.